More pawnbroker enquiries

PETALING JAYA: Pawnbrokers are receiving more enquiries from those wanting to pawn their belongings, despite the shops not being able to operate during the movement control order (MCO) period.

A pawn operator based in Johor Baru, Tan Wang Chang, said many had approached him in attempts to pawn items.

“Since the MCO, I would receive about 25 messages in a day from phone calls or platforms such as WhatsApp and Facebook.

“We do have existing customers contacting us about their items, but there are now more new customers making enquiries, ” he said.

Before the MCO, he received more than 10 enquiries, mostly from existing customers.

He said that many were from low-income groups strapped for cash, citing an example of a pregnant woman who did not have enough money for the delivery of her child.

Perhaps these people had not prepared for the MCO to be extended, he said.

“There are also daily wage earners, who do not have any income as they have stopped working, ” he said, adding that he had also received enquiries from other places such as Mersing or Kulai.

He is hoping that pawn shops will be allowed to resume operations soon, in order to provide a lifeline to those facing financial difficulties.

“This is not because I am a pawn shop operator, but this is a way that people could get cash immediately.

“I have seen a few cases where people couldn’t pay their credit card instalments for several months, ” he said, adding that Singapore has allowed pawnbrokers to continue operating.

Johor Pawnbrokers Association chairman Ho Kuek Kuwang said he had encountered cases of people who were cash-strapped due to the temporary closure of pawn shops.

“There are many who have been calling me and asking for help, but I said pawn shops cannot operate.

“Some said they have to feed their children. There are some who are factory workers, shop workers, those working on contracts; they do not have money, ” he said.

“We would be happy when the MCO ends on April 28 and we can resume operations, ” he said.

Malaysia Pawnbrokers Association president Tan Ho Keng said many individual pawn shops had received enquiries from customers on when the shops will be allowed to reopen.

“The association has already presented to the government about the vital role that pawn shops play in helping society and in particular the B40 segment in obtaining funding to buy necessities during this difficult period, ” he said in a statement.

Pawnbrokers licensed under the Housing and Local Government Ministry have yet to be given permission to operate during the MCO period.

Tan said that the expiry date of pawn tickets which fall during the MCO period will be extended, and assured customers that pawned pledges will be available to be redeemed after the end of the MCO.

He also urged the government to allow the digitalisation of pawnbroking transactions within provisions of the Pawnbrokers Act, to help prevent the spread of Covid-19.

A Selangor pawn shop operator, who wished to remain anonymous, also said there was a “significant increase” in the number of customer enquiries as the MCO progresses.

“Initially, we have an average of five enquiries a day, with 70% of them asking about interest calculation and expiry of pawn tickets.

“However with the MCO extension, our customer enquiries have jumped to nearly 20 to 30 enquiries a day, with half of them on pawning matters, ” he said.

Some daily wage earners, he said, were ineligible for Bantuan Prihatin Nasional, so they resorted to pawning their items.

“As a licensed pawn shop, we hope that we can be given permission to operate during the MCO period.

“This could ease some of the people’s burden during this difficult period, and hopefully, this could prevent the increase in illegal loan shark transactions, ” he said.